Set#: Trading Error:technicalstopnotrespected_Set01_19
Strategy: ()ORBU (X)HODB ()ORBD ()LODB ()Reversal ()After Hours
Market Condition: ()Gapping Up (X)Gapping Down ()Consolidating
5-Minute ATR: ().50 ()1 ()1.50 (X)2 ()2.50
Beginning Position Size: 75
Entry (AvgCost): 282.64
Technical Stop: 9EMA
Hard Stop: 281.14
LRC Break: (X)Yes (up) ()No ()In Between
Bollinger Bands Break: ()Yes (up/down) ()No (X)In Between
Level1: 294.18 (X)DP()LRC()BB()MA * Level2: ()DP()LRC()BB()MA * Level3: ()DP()LRC()BB()MA * Level4: ()DP()LRC()BB()MA
Profit Target1(psy): 284.00 * Profit Target2(psy): 284.50 * Profit Target3(psy): * Profit Target4(psy):
Exit1: 279.53 * Exit2: * Exit3: * Exit4: * Exit5:
**What was the result of the trade, what happened? This was a failed trade. The market was gapping down at the time of entry. I took an HODB trade at 282.64 with 75 shares when the price action broke HOD with confirmation. The volume was average. The price action did break the LRC and was in between the Bollinger Bands. I set the loss of the 9EMA with confirmation as my technical stop and a 2.00 hard stop based on the ATR of the 5-minute candle prior to entry. I had a daily pivot at 294.18. I set my profit targets at 284.00 and 284.50. The price action quickly made a new HOD then reversed breaking through my stops. I allowed the price action to test other support levels before deciding to exit my position once it broke VWAP.
*FEELINGS- Describe what you thought and felt during the trade? Frustrated that I did not respect my stops and allowed the price action to test support levels further down.
*EVALUATION- What was good or bad about the trade (what worked according to plan in the trade)? Good: The price action broke HOD with confirmation. Bad: The price action quickly made a new HOD then reversed breaking through my stops. I allowed the price action to test other support levels before deciding to exit my position once it broke VWAP.
*ANALYSIS- Does the trade make sense to you now that it is over? No.
*CONCLUSION- What is the final judgment of the trade (draw conclusions)? I broke my rules of respecting stops that I established during the trade. I could have reduced my loss by simply respecting my stops. The price action formed a shooting star during my entry which was a strong signal that the price action was about to reversed which it did.
*ACTION PLAN- How are you going to avoid the mistakes you made on this trade? How are you going to make sure you get the same results the next time if the trade was good? I will respect all technical and hard stops established during the trade.
*TRADE MANAGEMENT: Strategy (X)Go ()No Go * Max Risk Per Trade Identified (X)Go ()No Go * Profit Targets Set (X)Go ()No Go
*TRADE EXECUTION: Entry ()Go (X)No Go * Profit Targets/Stop Respected Without Fear ()Go (X)No Go
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Nice job honoring your stop loss and trading plan rules! Thanks for sharing!